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INR Futures

* The rupee gained another 15 paise to close at 72.50. It managed to gain 10 paise to end at 72.65 levels. We feel the rupee is likely to appreciate further

* The momentum in GBP/US$ continued. It remained largely above 1.40 levels. The risk on move in the currency pair is likely to continue and a change of bias would be seen only below 1.38 levels

Global Bonds

* The Nifty continued to correct for a fifth consecutive day and ended the day with a loss of 2.04%. According to the option chain, aggressive Call writing was seen at the higher levels strikes, which indicates that upside would be capped while on the other hand, 14500 strike has the highest Put OI, which should act as support

* The Bank Nifty opened higher but as the day progressed selling pressure intensified as it closed near the lower end of the day’s range. Most private sector banks along with midcap and PSU banks continued to close in the red.

FII & FPI Activities

* Foreign institutional investors (FII) remained buyers as they bought to the tune of | 230 crore on February 18, 2021. They bought worth | 1191 crore in the equity market and sold worth | 960 crore in the debt market

US$INR futures on NSE

* The US$INR future continue to appreciate against the dollar and moved below our target levels of 72.50. We believe it should consolidate around these levels while upsides can be used as shorting opportunity once again

* The dollar-rupee February contract on the NSE was at | 72.46 in the last session. The open interest increased almost 5% in the February series

US$INR Strategy

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